Equifax 2007 Annual Report Download - page 51

EQUIFAX | 2007 ANNUAL REPORT 49
Item 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Financial Statements
Management’s Report on Internal Control over Financial Reporting 49
Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting 50
Report of Independent Registered Public Accounting Firm 51
Consolidated Statements of Income for each of the three years in the period ended December 31, 2007 52
Consolidated Balance Sheets at December 31, 2007 and 2006 53
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2007 54
Consolidated Statements of Shareholders’ Equity and Comprehensive Income for each of the three years
in the period ended December 31, 2007 55
Notes to Consolidated Financial Statements 57
MANAGEMENT’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
Management of Equifax is responsible for establishing and
maintaining adequate internal control over fi nancial reporting as
defi ned in Rule 13a-15(f) under the Securities Exchange Act of
1934. Equifax’s internal control over fi nancial reporting is a process
designed to provide reasonable assurance regarding the reliability
of fi nancial reporting and the preparation of fi nancial statements
for external purposes in accordance with U.S. generally accepted
accounting principles. Internal control over fi nancial reporting
includes those written policies and procedures that:
• Pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and
dispositions of the assets of Equifax;
• Provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in
accordance with U.S. generally accepted accounting principles;
• Provide reasonable assurance that receipts and expenditures
of Equifax are being made only in accordance with autho-
rization of management and the Board of Directors of
Equifax; and
• Provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of
assets that could have a material effect on the consolidated
financial statements.
Internal control over fi nancial reporting includes the controls
themselves, monitoring and internal auditing practices, and actions
taken to correct defi ciencies as identifi ed.
Because of its inherent limitations, internal control over
fi nancial reporting may not prevent or detect all misstatements.
Also, projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.
Management assessed the effectiveness of Equifax’s internal
control over fi nancial reporting as of December 31, 2007. Manage-
ment based this assessment on criteria for effective internal control
over fi nancial reporting described in “Internal Control – Integrated
Framework” issued by the Committee of Sponsoring Organizations
of the Treadway Commission. Management’s assessment included
an evaluation of the design of Equifax’s internal control over
fi nancial reporting and testing of the operational effectiveness of its
internal control over fi nancial reporting. Management reviewed
the results of its assessment with the Audit Committee of its
Board of Directors.
Based on this assessment, management determined that, as of
December 31, 2007, Equifax maintained effective internal control
over fi nancial reporting.